EX-99.1 2 q32026earningsrelease.htm EXHIBIT 99.1 Document Visa Reports Fiscal Third Quarter 2026 Results San Francisco, CA, July 28, 2026 – Visa (NYSE: V) • GAAP net income of $5.6B or $2.97 per share and non-GAAP net income of $6.3B or $3.32 per share • Net revenue of $11.6B, an increase of 14%, or 13% on a constant-dollar basis • Growth in payments volume, cross-border volume and processed transactions was strong • Share repurchases and dividends of $6.2B Income Statement Summary In billions, except percentages and per share data. % change is calculated over the comparable prior-year period. Q3 2026 Ryan McInerney , Chief Executive Officer, Visa, commented on the results: USD % Change Net Revenue $11.6 14% "Visa delivered a strong fiscal third quarter, with net revenue up 14% year-over-year, GAAP EPS up 10% and non-GAAP EPS up 11%. Consumer and business spending remains resilient, and our strategy continues to deliver strong performance across consumer payments, commercial and money movement solutions and value-added services. As the leading hyperscaler of payments globally, we are designing, building and shipping products at an increased velocity, positioning Visa, our clients and the ecosystem to capture the opportunities ahead and drive growth." GAAP Net Income $5.6 7% GAAP Earnings Per Share $2.97 10% Non-GAAP Net Income (1) $6.3 8% Non-GAAP Earnings Per Share (1) $3.32 11% (1) Refer to Non-GAAP Financial Measures for further details and a reconciliation of the GAAP to non-GAAP measures presented. Key Business Drivers YoY increase / (decrease), volume in constant dollars Q3 2026 Payments Volume 10% Cross-Border Volume Excluding Intra-Europe (2) 12% Cross-Border Volume Total 13% Processed Transactions 10% (2) Cross-border volume excluding transactions within Europe. Fiscal Third Quarter 2026 — Financial Highlights GAAP net income in the fiscal third quarter was $5.6 billion or $2.97 per share, an increase of 7% and 10%, respectively, over prior year’s results. Current year's results included special items of $563 million for severance costs, $237 million for a litigation provision associated with the interchange multidistrict litigation ("MDL") case and $18 million for a deferred tax benefit recognized due to a change in the U.S. taxation of certain foreign earnings. Current year's results also included $9 million of net losses from equity investments and $78 million from the amortization of acquired intangible assets and acquisition-related costs. Prior year's results included a special item of $615 million for a litigation provision associated with the MDL case and other legal matters, $35 million of net losses from equity investments and $73 million from the amortization of acquired intangible assets and acquisition-related costs. Excluding these items and related tax impacts, non-GAAP net income for the quarter was $6.3 billion or $3.32 per share, increases of 8% and 11%, respectively, over prior year’s results (refer to Non-GAAP Financial Measures for further details). GAAP earnings per share increase was approximately 9% on a constant-dollar basis, which excludes the impact of foreign currency fluctuations against the U.S. dollar. Non-GAAP earnings per share growth was approxima tely 11% on a constant-dollar basis. All references to earnings per share assume fully diluted class A share count. Net revenue in the fiscal third quarter was $11.6 billion, an increase of 14%, driven by the year-over-year growth in payments volume, cross-border volume and processed transactions. Net revenue increased 13% on a constant-dollar basis. Payments volume for the three months ended March 31, 2026, on which fiscal third quarter service revenue is recognized, increased 9% over the prior year on a constant-dollar basis. Payments volume for the three months ended June 30, 2026 increased 10% over the prior year on a constant-dollar basis. Cross-border volume excluding transactions within Europe, which drives our international transaction revenue, for the three months ended June 30, 2026, increased 12% on a constant-dollar basis over the prior year. Total cross-border volume on a constant-dollar basis increased 13% over the prior year. Total processed transactions, which represent transactions processed by Visa, for the three months ended June 30, 2026, were 71.7 billion, a 10% increase over the prior year. Fiscal third quarter service revenue was $4.9 billion, an increase of 14% over the prior year, and is recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenue rose 17% over the prior year to $6.0 billion. International transaction revenue grew 6% over the prior year to $3.9 billion. Other revenue of $1.5 billion rose 45% over the prior year. Client incentives were $4.7 billion, up 18% over the prior year. GAAP operating expenses were $4.8 billion for the fiscal third quarter, a 19% increase over the prior year's results, primarily driven by an increase in personnel expenses. GAAP operating expenses included the special items as well as the amortization of acquired intangible assets and acquisition-related costs in the current and prior year. Excluding these items, non-GAAP operating expenses increased 17% over the prior year, primarily driven by increases in marketing and personnel expenses. GAAP non-operating expense was $44 million for the fiscal third quarter, including $9 million of net equity investment losses. Excluding this item, non-GAAP non-operating expense was $35 million. GAAP effective income tax rate was 17.6% for the quarter ended June 30, 2026. Excluding the special item related to the deferred tax benefit and the related tax impacts from the non-GAAP items, the non-GAAP effective income tax rate was 18.4% for the quarter ended June 30, 2026. Cash, cash equivalents and investment securities were $13.9 billion at June 30, 2026. The weighted-average number of diluted shares of class A common stock outstanding was 1.90 billion for the quarter ended June 30, 2026. 2 Other Notable Items On May 12, 2026, Visa settled its previously announced exchange offer for class B-1 common stock and class B-2 common stock (together, "eligible class B common stock"). The exchange offer allowed each participating holder of eligible class B common stock to exchange their shares of eligible class B common stock for a combination of Visa's class B-3 common stock, Visa's class C common stock and, where applicable, cash in lieu of fractional shares. On June 25, 2026, Visa deposited $250 million into its litigation escrow account, which was previously established under the Company’s U.S. retrospective responsibility plan to insulate the Company and class A common stockholders from financial liability for certain litigation cases. This deposit has the same economic effect on earnings per share as repurchasing the Company's class A common stock as it reduced each of the as-converted class B-1 common stock, class B-2 common stock and class B-3 common stock share counts at a volume-weighted average price of $333.42. During the three months ended June 30, 2026, Visa repurchased approximately 14.5 million shares of class A common stock at an average cost of $330.71 per share for $4.9 billion. The Company had $28.4 billion of remaining authorized funds for share repurchases as of June 30, 2026. On July 28, 2026, the board of directors declared a quarterly cash dividend of $0.670 per share of class A common stock (determined in the case of all other outstanding common and preferred stock on an as-converted basis) payable on September 1, 2026, to all holders of record as of August 11, 2026. Fiscal Third Quarter 2026 Earnings Results Call Details Visa’s executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) today to discuss the financial results and business highlights. All interested parties are invited to listen to the live webcast at investor.visa.com . A replay of the webcast will be available on the Visa Investor Relations website for 30 days. Investor information, including supplemental financial information and operational performance data, is available on the Visa Investor Relations website at investor.visa.com . 3 Forward-Looking Statements This document contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that relate to, among other things, our future operations, prospects, developments, strategies, business growth, anticipated timing and benefits of our acquisitions, and financial outlook. Forward-looking statements generally are identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “projects,” “outlook,” “could,” “should,” “will,” “continue” and other similar expressions. All statements other than statements of historical fact could be forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond our control and are difficult to predict. Actual results or outcomes, or the timing of our results or outcomes, could differ materially from those expressed in, or implied by, our forward-looking statements due to a variety of factors, including, but not limited to: • impact of complex and evolving global regulations; • increased scrutiny and regulation of the global payments industry; • impact of government-imposed obligations and/or restrictions on international payments systems; • impact of laws and regulations regarding the handling of personal data, including laws and regulations related to privacy, cybersecurity and AI; • impact of tax examinations or disputes, or changes in tax laws; • outcome of litigation or investigations; • intense competition in our industry; • dependence on our client and seller base, which may be costly to win, retain and develop; • continued push to lower acceptance costs and challenge industry practices; • dependence on relationships with financial institutions, acquirers, processors, sellers, payment facilitators, ecommerce platforms, fintechs and other third parties; • our inability to maintain and enhance our brand; • impact of global economic, political, market, health and social events or conditions; • our ability to adjust to evolving corporate responsibility and sustainability matters and related regulations; • exposure to significant risk of loss or reduction of liquidity due to our indemnification obligation to fund settlement losses of our clients; • failure to anticipate, adapt to, or keep pace with, new technologies in the payments industry; • a disruption, failure or breach of our networks or systems, including as a result of cyber incidents or attacks; • our inability to achieve the anticipated benefits of our acquisitions, joint ventures or strategic investments; • our inability to attract, hire and retain a highly qualified workforce, including key management; • the conversions of our class B-1, B-2, B-3 and class C common stock or series A, B and C preferred stock into shares of class A common stock would result in voting dilution to, and could adversely impact the market price of, our existing class A common stock; • differing interests between holders of our class B-1, B-2, B-3 and C common stock and series A, B and C preferred stock compared to our class A common stock concerning certain significant transactions; and • other factors described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2025, and any subsequent reports on Forms 10-Q and 8-K. Except as required by law, we do not intend to update or revise any forward-looking statements as a result of new information, future events or otherwise. About Visa Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, sellers, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com. Contacts Investor Relations Jennifer Como, 650-432-7644 InvestorRelations@visa.com Media Relations Fletcher Cook, 650-432-2990 Press@visa.com 4 Fiscal Third Quarter 2026 — Financial Summary INCOME STATEMENT SUMMARY Three Months Ended June 30, 2026 YoY Change (in millions, except percentages and per share data) GAAP Revenue Service revenue $ 4,922  14 % Data processing revenue 6,042  17 % International transaction revenue 3,853  6 % Other revenue 1,496  45 % Client incentives (4,680) 18 % Net revenue $ 11,633  14 % Total operating expenses $ 4,756  19 % Non-operating income (expense) (44) (128 %) Effective income tax rate 17.6 % 1 ppt Net income $ 5,628  7 % Earnings per share $ 2.97  10 % Non-GAAP (1) Total operating expenses $ 3,878  17 % Non-operating income (expense) (35) (119 %) Effective income tax rate 18.4 % 1 ppt Net income $ 6,296  8 % Earnings per share $ 3.32  11 % (1) Refer to Non-GAAP Financial Measures for further details. KEY BUSINESS DRIVERS YoY Change Constant Nominal Payments volume 10% 11% Cross-border volume excluding intra-Europe (2) 12% 14% Cross-border volume total 13% 15% Processed transactions 10% 10% (2) Cross-border volume excluding transactions within Europe. 5 Visa Consolidated Balance Sheets (unaudited) June 30, 2026 September 30, 2025 (in millions, except per share data) Assets Cash and cash equivalents $ 12,359   $ 17,164  Restricted cash equivalents—U.S. litigation escrow 888   2,990  Investment securities 1,433   1,833  Settlement receivable 2,400   4,191  Accounts receivable 3,527   3,126  Customer collateral 4,310   3,625  Current portion of client incentives 2,523   2,158  Prepaid expenses and other current assets 3,562   2,679  Total current assets 31,002   37,766  Investment securities 150   999  Client incentives 5,884   5,157  Property, equipment and technology, net 4,858   4,236  Goodwill 20,825   19,879  Intangible assets, net 27,532   27,646  Other assets 4,339   3,944  Total assets $ 94,590   $ 99,627  Liabilities Accounts payable $ 553   $ 555  Settlement payable 3,277   4,568  Customer collateral 4,310   3,625  Accrued compensation and benefits 2,219   1,863  Client incentives 11,429   10,369  Accrued liabilities 5,409   5,466  Current maturities of debt 2,996   5,569  Accrued litigation 1,274   3,033  Total current liabilities 31,467   35,048  Long-term debt 20,862   19,602  Deferred tax liabilities 5,219   5,549  Other liabilities 1,864   1,519  Total liabilities 59,412   61,718  Equity Preferred stock, $0.0001 par value, 5 shares issued and outstanding as of June 30, 2026 and September 30, 2025 514   745  Common stock, $0.0001 par value: Class A common stock, 1,702 and 1,691 shares issued and outstanding as of June 30, 2026 and September 30, 2025, respectively —   —  Class B-1, B-2 and B-3 total common stock, 63 and 125 shares issued and outstanding as of June 30, 2026 and September 30, 2025, respectively —   —  Class C common stock, 18 and 9 shares issued and outstanding as of June 30, 2026 and September 30, 2025, respectively —   —  Right to recover for covered losses (111) (124) Additional paid-in capital 22,168   21,934  Accumulated income 12,753   15,106  Accumulated other comprehensive income (loss): Investment securities 2   12  Defined benefit pension and other postretirement plans (25) (32) Derivative instruments (129) (307) Foreign currency translation adjustments 6   575  Total accumulated other comprehensive income (loss) (146) 248  Total equity 35,178   37,909  Total liabilities and equity $ 94,590   $ 99,627  6 Visa Consolidated Statements of Operations (unaudited) Three Months Ended June 30, Nine Months Ended June 30, 2026 2025 2026 2025 (in millions, except per share data) Net revenue $ 11,633   $ 10,172  $ 33,764   $ 29,276  Operating Expenses Personnel 2,458   1,749  6,063   5,219  Marketing 649   421  1,604   1,108  Network and processing 280   224  773   655  Professional fees 246   187  692   503  Depreciation and amortization 367   317  1,026   904  General and administrative 503   482  1,468   1,382  Litigation provision 253   615  1,290   1,659  Total operating expenses 4,756   3,995  12,916   11,430  Operating income 6,877   6,177  20,848   17,846  Non-operating Income (Expense) Interest expense (194) (39) (566) (379) Investment income (expense) and other 150   195  451   504  Total non-operating income (expense) (44) 156  (115) 125  Income before income taxes 6,833   6,333  20,733   17,971  Income tax provision 1,205   1,061  3,231   3,003  Net income $ 5,628   $ 5,272  $ 17,502   $ 14,968  Basic Earnings Per Share Class A common stock $ 2.97   $ 2.69  $ 9.15   $ 7.60  Class B-1 common stock $ 4.59   $ 4.21  $ 14.18   $ 11.88  Class B-2 common stock $ 4.47   $ 4.13  $ 13.85   $ 11.70  Class B-3 common stock (1) $ 4.47   $ —  $ 13.77   $ —  Class C common stock $ 11.87   $ 10.78  $ 36.58   $ 30.39  Basic Weighted-average Shares Outstanding Class A common stock 1,673   1,709  1,678   1,720  Class B-1 common stock 3   5  4   5  Class B-2 common stock 53   120  98   120  Class B-3 common stock (1) 34   —  11   —  Class C common stock 18   9  12   9  Diluted Earnings Per Share Class A common stock $ 2.97   $ 2.69  $ 9.14   $ 7.59  Class B-1 common stock $ 4.59   $ 4.20  $ 14.17   $ 11.87  Class B-2 common stock $ 4.47   $ 4.13  $ 13.83   $ 11.69  Class B-3 common stock (1) $ 4.47   $ —  $ 13.76   $ —  Class C common stock $ 11.86   $ 10.77  $ 36.55   $ 30.35  Diluted Weighted-average Shares Outstanding Class A common stock 1,898   1,959  1,916   1,973  Class B-1 common stock 3   5  4   5  Class B-2 common stock 53   120  98   120  Class B-3 common stock (1) 34   —  11   —  Class C common stock 18   9  12   9  (1) No shares of class B-3 common stock were outstanding prior to the class B-1 and B-2 common stock exchange offer. 7 Visa Consolidated Statements of Cash Flows (unaudited) Nine Months Ended June 30, 2026 2025 (in millions) Operating Activities Net income $ 17,502   $ 14,968  Adjustments to reconcile net income to net cash provided by (used in) operating activities: Client incentives 13,194   11,503  Share-based compensation 728   706  Depreciation and amortization 1,026   904  Deferred income taxes (638) 347  VE territory covered losses (108) (22) (Gains) losses on equity investments, net 31   133  Other 16   70  Change in operating assets and liabilities: Settlement receivable 1,761   (211) Accounts receivable (368) (334) Client incentives (13,121) (11,253) Other assets (832) (18) Accounts payable (28) (14) Settlement payable (1,436) 619  Accrued and other liabilities 373   (1,199) Accrued litigation (1,758) 622  Net cash provided by (used in) operating activities 16,342   16,821  Investing Activities Purchases of property, equipment and technology (1,178) (1,093) Purchases of investment securities (50) —  Proceeds from maturities and sales of investment securities 1,280   2,468  Acquisitions, net of cash, cash equivalents, restricted cash and restricted cash equivalents acquired (705) (887) Purchases of other investments (97) (41) Other investing activities (5) (43) Net cash provided by (used in) investing activities (755) 404  Financing Activities Repurchases of class A common stock (16,430) (13,389) Repayments of senior notes (5,565) —  Dividends paid (3,852) (3,488) Proceeds from issuance of senior notes 2,995   3,924  Net proceeds from issuance (repayments) of commercial paper 1,496   —  Proceeds from stock issued under equity plans 204   341  Taxes paid rel